If the price of computers decreases, then the:
A. sales of a substitute, such as a telephone, increase.
B. sales of a substitute, such as a telephone, decrease.
C. inventory of computer software increases.
D. inventory of computers increases.
Answer: B
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Which of the following is an example of securitization?
A) a bank bundles a group of mortgage loans and sells the bundle to investors B) an investor sells his shares of stock and uses the proceeds to purchase Treasury bonds C) a household deposits cash in a savings account that is insured by the FDIC D) a government chooses to only purchase Treasury securities from other governments that are financially sound
If there is zero search cost, then in the presence of asymmetric information, competitive firms will
A) charge the monopoly price. B) charge the competitive price. C) charge zero price. D) shut down.